ASEM ASEM Moving Toward Solid Partnership

By Shin Je-yoon

Deputy Minister for International Affairs at the Ministry of Strategy and Finance

At the dawn of the 1990s, the sudden demise of the decade-long Cold War international order followed by even accelerating economic regionalism astounded people around the globe. In Asia, we have witnessed emerging China leading overall growth in the region, and other parts of the world have also beheld spawning of such regional regimes as EU in 1993 and NAFTA in 1994, respectively.

As a result, the configuration of the international society has been transformed from an ideologically-driven bipolar world to a multi-polar one consisting of three major regions ― Asia, North America, and Europe.

Among the three influential poles in the world, Europe and North America have accomplished a legacy of substantial cooperation in the areas of politics, economy and culture. Asia and North America have also consolidated their cooperative spirit through significant inter-regional dialogues, namely, the Asia Pacific Economic Cooperation (APEC).

In contrast, the association between Asia and Europe has been relatively weaker so that it was called a `missing link.'

Against this backdrop, the Asia Europe Meeting (ASEM) was launched in 1996 with an aim to foster inter-regional cooperation between Asia and Europe. ASEM has steadily extended its membership from 25 countries at the onset to currently 43.

It has also broadened its sphere of influence while accounting for 40 percent of the world population, 50 percent of global GDP, and 60 percent of total amount of world trade.

Now, we can safely say that ASEM is the most significant international forum bridging two distinct cradles of human civilization.

Korea has been actively involved in the ASEM process in view of bolstering cooperative ties between the two regions. Our efforts include hosting of the third ASEM Summit Meeting in 2000 and convening of nine rounds of seminars and forums regarding the establishment of promoted intelligence and information.

Nevertheless, it is regrettable that Korea has failed to win the bid to host the ASEM Finance Ministers' Meeting that China and Japan, other two regional powers, have successfully made it.

Given this context, I have strived to achieve this long cherished desire as a representative to the 2006 ASEM Finance Deputies' Meeting and finally managed to reach an agreement on Korea's assuming of the chairmanship for the 2008 ASEM Finance Ministers' Meeting endorsed by Finance Ministers' unanimous support in April 2006.

I can still vividly remember the touching moment when I delivered an acceptance speech at the Finance Deputies' Meeting.

In this sense, the 8th ASEM Finance Ministers' Meeting to be held in Jeju on June 16, is expected to provide renewed momentum for strengthening cooperation with Europe enriching what was addressed in the 2000 ASEM Summit.

In addition, as the first Finance Ministers' meeting hosted by Korea since the inauguration of the new government, it can serve as an invaluable opportunity to inform major economies' heads and prominent international figures of the new government's vision and economic philosophy centering on business-friendly environment, regulatory reform, and global Korea.

Besides, we can take advantage of this occasion to promote Jeju, the meeting venue as a favored international tourist destination. We expect that adjunct cultural events and performances will render this Meeting another chance of cultural diplomacy elevating traditional beauty of Korea among the people from various parts of Asia and Europe.

Turning to the agenda of this meeting, the Ministers are expected to have in-depth discussions on the issues of common interests over the world.

Recently, the global economy has gone through a harsh period of downswing due to financial market turmoil and housing market slump amid high commodity prices such as oil and food price, which may be referred to as the third oil shock. Here, unique characteristics of this problem necessitate more coordinated policy response, globally and regionally.

It is natural that this year's meeting focuses on addressing current situation of global economy and coming up with collaborative measures against outstanding issues.

Having experienced the 1997 financial crisis, Asian countries have been fully aware of its devastating effects and necessity of enhanced regional cooperation.

Based on that, they have been exerting a whole gamut of efforts and have moved forward the economic integration as a long-term goal under ASEAN+3 process. In particular, growing potential risks have urged Asian countries to put greater focus on strengthened regional cooperation.

At this juncture, Asian countries may seek insightful and practical advice from half-century long, steadfast efforts of Europe. The Korean government has strived to bring this issue to the table since the last 7th Finance Ministers' Meeting.

And we will play an even more important role in leading such efforts for economic integration in Asia and Asia-Europe economic cooperation through the ASEM International Conference to be held on June 15 back to back with the Ministers Meeting. The conference will be attended by former and incumbent finance ministers, central bankers, and eminent scholars.

This Finance Ministers' Meeting will also explore effective ways to ensure sustainable growth for developed countries and promoted capacity building for developing countries under ASEM.

With the theme of ``Infrastructure Finance'', issues related to promoting Public Private Partnership (PPP) will be discussed, with an emphasis on provision of necessary assistance to developing countries who newly introduce PPP.

Given the emerging attention to Microfinance as an alternative policy tool to deal with poverty problem and social cohesion, focus will be directed to that issue as well.

Another issue to be addressed in the meeting is climate change, one of the biggest threats to global companies. Through the discussion, we expect that market-oriented approaches will be revisited as the most efficient way that countries can consider.

It is true that Korea's eye has been unevenly placed on major economies surrounding Korea such as China, Japan, and the U.S. and its interest and initiatives have been confined to its geopolitics.

However, it now pursues a broader perspective encompassing Europe, its remote but potential partner. Korean government will spare no efforts to make this ASEM Finance Ministers' Meeting a high success and to substantially extend its scope of diplomacy in the realm of economy and finance.